Is There Hidden Value in Stanbic IBTC?

Nigerian Stock Exchange

Stanbic IBTC is Nigeria’s best-performing bank stock. Its share price has climbed 40.5% this year and 55.4% over the past twelve months. Is it nearing the end of its run? Or is the market still offering investors a discount to the bank’s real worth?

Here, Godfrey Mwanza, CFA shows us how he values the company.


Here’s Why Co-operative Bank of Kenya Stock Popped 12%

Co-operative Bank of Kenya

When Co-operative Bank of Kenya (COOP) announced last week that they were hiring global consulting firm, McKinsey & Company, for advice on improving operational efficiency, investors took notice. The stock has jumped 12.4% since the news appeared.

So why are investors so excited? How much scope does COOP have to streamline its operations? And how might such restructuring impact the bottom line?


Are Ecobank Shares a Bargain?

Are Ecobank shares a bargain?

Shares of Pan-African lender, Ecobank Transnational (ETI), have surged 7.1% in the month of September, blowing away the Nigerian Stock Exchange’s All Share Index.

Qatar National Bank’s purchase of a 23.5% stake in the firm triggered the big price move.

Now the stock trades at its highest point in over four years. Is there still value left on the table? Or would investors be better off looking elsewhere? Let’s take a closer look to find out.


Will Kenyan Bank Stocks Sizzle or Fizzle in 2014?


Bank stocks made Nairobi Stock Exchange investors much richer in 2013.

A stable political environment, regional growth, good profits, and a relatively steady interest rate environment kept the bulls running.

But all of that’s in the rear view mirror. What we really want to know is whether these stocks are worth banking on this year. Will their shares pop or drop? Sizzle or fizzle? Jump or slump? Rise or… Well, you get the idea.


Kenya: A Bonanza for Bank Investors

Photo by DEMOSH

Jan Schalkwijk of Africa Capital Group traveled to Nairobi recently to meet with the management teams of several large Kenyan companies. The following is his take on three of the Nairobi Securities Exchange’s most prominent banks.


Is KCB Bank Group Kenya’s Choicest Stock?

Kamanda Morara, Ashanti Research

When I asked my friend Kamanda Morara of Ashanti Research for his best Kenyan stock pick for 2013 in mid-December, I had no idea that his choice would bear fruit so quickly.

His tip, KCB Bank Group (KNCB:KN), was trading at a price of KES27.50 at that time. This gave it a dividend yield of 6.7% and a trailing P/E ratio of just 6.5.

Someone must have been eavesdropping on our conversation.

The stock now boasts a price of KES33.50 — a gain of nearly 22% in less than two months.

So, I checked back in with Kamanda last week to congratulate him and to ask whether he felt KCB still had room to run.


Ranking Kenya’s Most Efficient Banks

Photo by GenVessel

Last week I posted a list of Africa’s 100 largest frontier stocks. You didn’t have to examine the list very closely to see that banks were disproportionately represented. In fact, of the 100 companies, 35 are banks.

So, as Africa investors, we’d do well to develop some skills in analyzing bank stocks.

Today, we’ll start with a basic measure of bank profitability – the efficiency ratio.


Stock Showdown: Ranking Kenya’s Best Banks

Photo by DEMOSH

So far, we’ve scoped out bank stocks in Nigeria and Ghana, analyzing their profitability, growth, risk, and value to separate the bargains from the bunk.

Now it’s time to turn to Kenya, East Africa’s largest economy. Ten banks call the Nairobi Securities Exchange home. All of them possess different strengths and weaknesses.

Let’s put them through our ranking exercise to help determine which ones merit a more detailed analysis.


Stock Showdown: Ranking Ghana’s Best Banks

Photo by George Appiah

Last week we crunched the numbers of some Nigerian banks, analyzing their profitability, growth, risk, and value to separate the gems from the junk. I hope you got as much of a kick out of the exercise as I did, because we’re going to do the same thing again today. […]


Stock Showdown: Ranking Nigeria’s Best Banks

Photo by André Silvestre

If you’ve ever taken a look at the stocks listed on an African market, you likely noticed that they tend to be dominated by banks. Quite often banks are the exchange’s largest, most liquid shares.

It’s for this reason that I spend considerable time coming up with quick and easy ways to evaluate the relative attractiveness of bank stocks.

I walk through my method here.